News: UPDATE 1-Woodside taps into big oil find off Senegal for near-term growth, page-17

Greater Enfield Dev drilling is part of their Organic Reserve Replacement, ie move reserves to 2P from 2C. Whilst SNE is RRR via Acquistion.

GrEnf is an extension of what's already known to them, so will need net capital of US1.1bil (gross 1.9bil US) to drill 11 wells to flow 69 mmbbls (gross, or 41 net) over 8-10 yrs.

The main field has been a jackpot for them since 2006 having flowed 75mmbbls & generating gross rev closer to 5bil. This only cost them A$1.48bil to develop via 11 wells & they sold 40% to Mitsui at US464.5mil. So from a bizness & developmnt perspective they know what they r doing. The new develp should still generate cashflw over many years. One doesnt walk away from what's already known.

SNE is a similar sort of play to these fields that WPL r working with in recent years, ie shallow reservoir, in DpWtrs. It's a case of willing seller & willing buyer. If there were others in the dataroom, then they would have lobbed low ball offers to wht WPL r paying Conoco. So US430mil for replacing a dwindling 2C base of 106 is a decent price for starters, & will take require future capital to Develop it b4 first oil.

They offered US500mil to Apache for Kitimat, 15tcf-2C or 2630mmboe added to the 2C gas category. Will need 900 wells to harness that amount of resource over time.

Simple rules apply in acquisitions. A dollar in hand today is better then what u'll get tomorrow esp when there r many unknowns, that's what Conoco would have thought anyways, ie take USD430mil now or stick around for yonks to spend xxxx mil before first oil.

Unfortunately there is no right or wrong answer in this case, its simply a case of time value of money & Reserve replacements betwn a vendor & a buyer, period.